Cable & Wireless is to plough £55m-£85m into local loop unbundling (LLU) over the next couple of years as it ramps up its investment in broadband. It is to unbundle up to 400 exchanges in the second half of 2005 as it targets around a third of BT's exchanges.

Last week's announcement follows C&W's recent acquisition of Bulldog Communications, one of the few companies in the UK currently installing its kit in BT exchanges to supply telco services direct to end users.

According Francesco Caio, chief executive, C&W is "uniquely positioned to take advantage of LLU in the UK given the reach of its national network, the second largest in the country. LLU enables Cable & Wireless to establish full ownership of its customers as their sole telecommunications provider reducing reliance on the incumbent. LLU allows us to establish a strong presence in the access network and to unlock the value of our fixed network. Over time this will translate to stronger margins."

Last week Bulldog began taking orders for a combined broadband and telephone service in central London based on its own LLU network. ®

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